SEC Tells Senate JOBS Act Could Put Investors At Risk

Law360, New York (March 15, 2012, 5:24 PM EDT) -- The chairman of the U.S. Securities and Exchange Commission on Tuesday told U.S. senators beginning debate Thursday on the Jumpstart Our Business Startups Act that it could endanger investors by loosening regulations on capital formation for small businesses.

In a letter addressed to Sens. Tim Johnson, D-S.D., and Richard Shelby, R-Ala., on Tuesday, SEC Chairman Mary Schapiro said that, while granting companies access to cost-effective capital was necessary for a strong economy, slackening regulations too much could put investors in danger of fraud, destroying investor confidence...
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